Track market-moving stories before they get noisy

It has been about a month since the last earnings report for BorgWarner (BWA - Free Report) . Shares have lost about 0.1% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is BorgWarner due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

BWA Tops Q2 Earnings EstimatesBorgWarner reported second-quarter 2026 adjusted earnings of $1.42 per share, which rose 17.4% year over year. The figure beat the Zacks Consensus Estimate of $1.26 by 12.7%. Net sales increased 0.3% to $3.65 billion and surpassed the consensus mark of $3.58 billion by 1.8%.

Strong cost controls supported profitability despite lower industry production and weakness in the Battery Energy Systems business. Adjusted operating margin expanded 100 basis points to 11.3%, while organic sales declined 1.2%.

Gross profit rose to $721 million from $640 million in the year-ago quarter. Gross margin improved to 19.8% from 17.6%, reflecting lower cost of sales and disciplined operating execution. Adjusted operating income increased to $413 million from $373 million.

Segmental PerformanceTurbos & Thermal Technologies sales declined 2.6% year over year to $1.44 billion amid lower industry production. Organic sales fell 4.3%. Segment adjusted operating income slipped to $225 million from $227 million.

Drivetrain & Morse Systems revenues increased 1.8% to $1.5 billion, aided by strong North American transfer-case volumes. Adjusted operating income rose to $277 million from $260 million, supported by higher sales and operating execution.

PowerDrive Systems sales grew 14.5% to $665 million, including organic growth of 11.7%. Its adjusted operating loss narrowed to $29 million from $33 million, driven by higher sales.

Battery Energy Systems revenues plunged 37.1% to $100 million due to weaker European demand and the absence of North American incentives. However, the segment’s adjusted operating loss narrowed to $2 million from $12 million, helped by restructuring actions and savings from the charging-business exit.

New Business PipelineBorgWarner announced seven awards spanning combustion, hybrid and electric-vehicle technologies. These included an eTurbo program for a European automaker, a torque-on-demand transfer case for a Chinese SUV and two variable cam timing programs.

The company also secured an integrated drive module award using its next-generation three-in-one system. Two high-volume inverter program extensions cover plug-in hybrid and 800-volt battery-electric applications. Production for the announced programs is scheduled to begin between late 2026 and 2029.

BorgWarner Advances Industrial ProductsThe company noted progress in data-center and industrial applications. Testing of its turbine generator achieved California Air Resources Board-level emissions standards, while component certification work is expected to begin in September.

BorgWarner continues to target a 2027 launch and had previously outlined roughly $300 million of turbine-generator revenues for that year. Customer interest includes multiple hyperscalers, and management expects to decide during the second half of 2026 whether additional capacity is needed.

BorgWarner is also developing energy-storage systems, microgrid inverters and power-conversion products. Four customers have received inverter samples, and the company is expanding its portfolio from 400 volts to 1,500 volts. It plans to invest an additional $10-$15 million in industrial research and development during the second half.

2026 Earnings View RaisedBWA raised its full-year adjusted earnings guidance to $5.05-$5.30 per share from $5-$5.20. The company maintained its sales outlook of $14-$14.3 billion and adjusted operating margin forecast of 10.7%-10.9%. Organic revenues are expected to decline 1.5%-3.5%, including an anticipated $250 million reduction in Battery Energy Systems sales.

Cash Flow Supports BuybacksSecond-quarter operating cash flow totaled $586 million, while free cash flow was $492 million. For 2026, the company continues to expect operating cash flow of $1.6-$1.7 billion and free cash flow of $900 million-$1.1 billion.

BorgWarner returned about $134 million to shareholders during the quarter through repurchases and dividends. Its board increased the share repurchase authorization by $1 billion, bringing total available authorization to approximately $1.35 billion through 2029. Cash and equivalents were $2.45 billion as of June 30, 2026.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.

VGM ScoresCurrently, BorgWarner has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, BorgWarner has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerBorgWarner is part of the Zacks Automotive - Original Equipment industry. Over the past month, Lear (LEA - Free Report) , a stock from the same industry, has gained 10.1%. The company reported its results for the quarter ended June 2026 more than a month ago.

Lear reported revenues of $6.21 billion in the last reported quarter, representing a year-over-year change of +3%. EPS of $4.28 for the same period compares with $3.47 a year ago.

For the current quarter, Lear is expected to post earnings of $3.28 per share, indicating a change of +17.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days.

Lear has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.

Isabelle McKenzie, Vice President, reported the sale of 4,500 shares of BorgWarner (BWA +1.67%) in an Aug. 18, 2026, SEC Form 4 filing.

Transaction summaryMetricValueShares sold4,500Transaction value$316,755Post-transaction shares (directly held)53,328Post-transaction value$3.7 millionTransaction value based on SEC Form 4 weighted average sale price ($70.39); post-transaction value based on Aug. 17, 2026, market close ($69.90).

Key questionsHow does this transaction impact the insider's total equity exposure?
The sale of 4,500 shares reduced McKenzie's direct holdings by roughly 8%, leaving the Vice President with 53,328 shares of common stock.What is the valuation context for this disposition?
The shares were sold at $70.39 per share, while the stock was priced at $69.90 at the market close on the day of the transaction.Does the insider maintain any indirect or derivative interests?
The current filing discloses no indirect holdings or other share classes, meaning the remaining 53,328 shares represent the insider's total reported equity interest in the company.Company OverviewMetricValueShare Price (as of market close 2026-08-17)$69.90Market Capitalization$13 billionRevenue (TTM)$14.3 billionNet Income (TTM)$415 millionCompany SnapshotBorgWarner is a global supplier of advanced propulsion technologies and components for internal combustion engines, hybrid drivetrains, and fully electric vehicles, with primary revenue streams derived from its Air Management, E-Propulsion & Drivetrain, Fuel Injection, and Aftermarket business segments.The company generates revenue through the design, manufacturing, and distribution of critical automotive components that optimize engine performance, thermal management, and propulsion efficiency across multiple vehicle powertrains and platforms.BorgWarner serves major global automotive original equipment manufacturers (OEMs) and the aftermarket sector, positioning itself as a critical supplier to the world's leading vehicle manufacturers across North America, Europe, and Asia.BorgWarner is a prominent tier-one automotive supplier with a global footprint, generating approximately $14.3 billion in TTM revenue and serving as a critical technology partner for the automotive industry's transition toward electrification and advanced propulsion systems. The company's diversified business model spanning multiple propulsion technologies provides a strategic position to capture growth opportunities in the industry's evolving landscape. With 37,500 employees worldwide and a market capitalization of $13 billion, BorgWarner maintains a competitive advantage through its integrated portfolio of advanced technologies and established relationships with leading global OEMs.

Premium Feature

Moneyball Superscore

67/100

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What this transaction means for investorsRoughly a month ago, BorgWarner reported its 2026 second-quarter earnings. Revenue was flat, but net income increased from the prior-year period to $277 million, indicating the company is squeezing noticeably more profit from similar sales. For what's next, the company warned of potential production declines, as well as headwinds due to lower sales of its battery energy systems. That said, the stock is still having a great run over the last year as Borg establishes itself as a critical technology partner for the automative industry. As of this writing, the Borg stock price has jumped nearly 50% over the last 12 months. In comparison, the S&P 500 is up 19% during the same period.

There are many reasons for an executive to sell stock, but McKenzie's sale doesn't appear to be anything other than profit-taking. As mentioned, the stock price has nearly climbed 50% over the past 12 months, so the executive appears to be locking in some gains. That's reinforced by the significant shares she still holds after the sale. Ultimately, McKenzie only reduced her position by 7.7%, still maintaining over 53,000 shares. The company may face short-term challenges amid the expected decline in battery energy systems sales. Still, at least from this executive transaction, there doesn't appear to be any signal that something is amiss with BorgWarner.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool recommends BorgWarner. The Motley Fool has a disclosure policy.

Director Shaun McAlmont reported a sale of 7,000 shares of BorgWarner Inc. (BWA +0.50%) on Aug. 17, 2026, according to a SEC Form 4 filing.

Transaction summaryMetricValueShares sold7,000Transaction value$485,520Post-transaction shares (directly held)18,070Post-transaction value$1.2 millionTransaction value based on SEC Form 4 weighted average sale price ($69.36); post-transaction value based on Aug. 17, 2026, market close ($69.90).

Key questionsWhat is the scale of the equity disposition relative to McAlmont's total position?
The sale of 7,000 shares constitutes a 28% reduction in the director's direct equity holdings. This liquidity event leaves the insider with a remaining direct position of 18,070 shares, valued at $1.2 million based on the Aug. 17, 2026, market close.How does the execution price compare to recent share performance?
The transaction was executed at $69.36 per share, during a period when the stock had appreciated significantly. As of the Aug. 17, 2026, transaction date, the company's shares had achieved a 69% return over the preceding year.Are there any indirect ownership structures or derivative complexities in the filing?
The filing indicates this was a straightforward direct sale of common stock. No indirect holdings through trusts or other entities were disclosed, and the reporting owner's total beneficial ownership comprises only of direct shares.Company OverviewMetricValueShare Price (as of market close 2026-08-17)$69.90Market Capitalization$13.1 billionRevenue (TTM)$14.3 billionNet Income (TTM)$415 millionCompany SnapshotBorgWarner is a global supplier of advanced propulsion technologies and components for internal combustion engines, hybrid vehicles, and fully electric drivetrains, with primary revenue streams derived from its Air Management, E-Propulsion & Drivetrain, Fuel Injection, and Aftermarket business segments.The company generates revenue through the design, manufacture, and distribution of critical automotive components and systems that enhance engine performance, thermal control, and propulsion efficiency across diverse vehicle platforms and powertrains.BorgWarner serves major original equipment manufacturers (OEMs) in the global automotive industry, including leading passenger vehicle and commercial vehicle producers, as well as the aftermarket replacement parts sector.BorgWarner is a prominent global automotive supplier with a market capitalization of $13.1 billion and TTM revenue of $14.3 billion, positioning it as a significant player in the propulsion technology sector. The company's diversified portfolio across multiple powertrain technologies includes traditional combustion, hybrid, and electric systems. Its operations offer strategic exposure to the automotive industry's ongoing transition toward electrification. With 37,500 employees and operations serving global OEM customers, BorgWarner maintains a competitive advantage through its technological expertise in thermal management, fuel injection systems, and electric propulsion solutions.

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What this transaction means for investorsThe sale of 7,000 shares, which reduces the insider's total holdings to 18,070, is noteworthy. There are many reasons to sell, however, and selling stock may not always indicate that an executive is worried about what's happening at the company. While the company reported net sales of $3.6 billion in the second quarter of 2026, only a slight increase from the prior-year period, this could be a transaction as simple as McAlmont locking in profits after BorgWarner's strong stock price performance. As of this writing, over the last 12 months, the BWA stock price has climbed 51.1%. In comparison, the S&P 500 is up 19.6% during the same period.

For shareholders wondering what's next for the near term, analysts are generally bullish on BorgWarner. Of the 18 who cover the company, 67% rate it a buy, while 33% rate it a hold. From that group of analysts, the median one-year price target is $81.50, representing a 26.2% gain from the price as of this writing. The highest price target in the group is $95, while the lowest is $62.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool recommends BorgWarner. The Motley Fool has a disclosure policy.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: BorgWarner (BWA - Free Report) BorgWarner Inc. is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Its products are designed to improve vehicle performance, propulsion efficiency, stability and air quality. The company manufactures and sells these products worldwide, primarily to OEMs of light vehicles, and also supplies OEMs of commercial vehicles and off-highway vehicles. BorgWarner also sells certain products to tier-one vehicle systems suppliers and into the aftermarket.

BWA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. BWA has a Growth Style Score of B, forecasting year-over-year earnings growth of 5.9% for the current fiscal year.

Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.02 to $5.20 per share. BWA boasts an average earnings surprise of +10.7%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, BWA should be on investors' short list.

, /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) (the "Company") today announced the expiration and final results of its previously announced tender offers (the "Tender Offers"), to purchase for cash the debt securities issued by the Company referred to below (collectively, the "Notes," and each a "Series"), in each case upon the terms and subject to the conditions set forth in the Offer to Purchase dated August 10, 2026 (the "Offer to Purchase") and any related documents (collectively with the Offer to Purchase, the "Tender Offer Documents"). In addition, the Company today announced that it had increased the Waterfall Cap for the Offers to $730,000,000, excluding the Accrued Interest Payment (as defined below), subject to the proration and the application of the Acceptance Priority Levels set forth in the table below and the Offer to Purchase. The Company increased the amount of 4.950% Notes accepted for payment in the Offers by 2% of the outstanding 4.950% Notes, as further described in the Acceptance Priority Procedures set forth in the Offer to Purchase, without amending or extending the Offer. Capitalized terms used but not defined in this press release have the meanings given to them in the Offer to Purchase.

The Tender Offers expired at 5:00 p.m., New York City time, on August 14, 2026 (the "Expiration Date"). Withdrawal rights for the Tender Offers expired at the Expiration Date, and accordingly, Notes validly tendered in the Tender Offers may no longer be withdrawn except where additional withdrawal rights are required by law.

At the Expiration Date, according to information provided by Global Bondholder Services Corporation, the tender and information agent for the Tender Offers, the aggregate principal amount of each series of Notes validly tendered and not validly withdrawn pursuant to the Tender Offers and the aggregate principal amount of each series of Notes accepted for purchase, are set forth in the table below.

Series of Notes

CUSIP/ISIN
Number(1)

Aggregate
Principal Amount
Outstanding Prior
to Tender Offer

Offer Sub
Cap

Acceptance
Priority Level

Tender
Consideration(2)

Aggregate
Principal
Amount
Tendered

Aggregate
Principal
Amount
Accepted

7.125% Senior
Notes due 2029
(Any and All Offer)

099724 AC0 /
US099724AC03

$120,685,000

N/A

N/A

$1,061.70

$27,105,000

$27,105,000

4.375% Senior
Notes due 2045

099724 AH9 /
US099724AH99

$500,000,000

N/A

1

$827.77

$130,482,000

$130,482,000

5.400% Senior
Notes due 2034

099724 AQ9 /
US099724AQ98

$500,000,000

N/A

2

$1,019.75

$339,547,000

$339,547,000

4.950% Senior
Notes due 2029

099724 AP1 /
US099724AP16

$500,000,000

N/A

3

$1,010.87

$291,426,000

$272,772,000

2.650% Senior
Notes due 2027 

099724 AL0 /
US099724AL02

$1,100,000,000

$250,000,000

4

$986.77

$300,008,000

$0

____________________________________

(1)

No representation is made as to the correctness or accuracy of the CUSIP or ISIN numbers listed above.

(2)

Payable per each $1,000 principal amount of Notes of a series validly tendered, not validly withdrawn and accepted for purchase at or prior to the Expiration Date. Each Tender Consideration was determined in the manner described in the Tender Offer Documents.

The Tender Consideration was determined at 3:00 p.m., New York City time, on August 14, 2026.

The Company's obligation to complete a Tender Offer with respect to the Notes validly tendered is conditioned on the satisfaction or waiver of conditions described in the Offer to Purchase. For the Notes accepted for purchase, all conditions to the Tender Offer with respect to such Notes were satisfied or waived on or prior to the Expiration Date. On the applicable Settlement Date, Holders whose Notes have been accepted for purchase will also receive an Accrued Interest Payment. The Notes validly tendered but not accepted for purchase will be returned promptly to the tendering Holders in accordance with the Offer to Purchase.

Information Relating to the Tender Offers

Barclays Capital Inc. and PNC Capital Markets LLC served as the dealer managers for the Tender Offers. Investors with questions regarding the Tender Offers may contact Barclays Capital Inc. at (212) 528-7581 or toll-free at (800) 438-3242, or email [email protected], or PNC Capital Markets LLC at (212) 878-8946 or toll-free at (833) 715-3537, or email [email protected]. Global Bondholder Services Corporation served as the tender and information agent for the Tender Offers and can be contacted at (212) 430-3774 or toll-free at (855) 654-2015. The Offer to Purchase may be accessed at the following web address: https://www.gbsc-usa.com/borgwarner/.

This press release shall not constitute an offer to sell, a solicitation to buy or an offer to purchase or sell any securities. The Tender Offers were made only pursuant to the Offer to Purchase and only to such persons and in such jurisdictions as is permitted under applicable law.

About BorgWarner

For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all. 

Forward-Looking Statements

This release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact, contained or incorporated by reference in this release that we expect or anticipate will or may occur in the future regarding our financial position, including our guidance for full year 2026, our business strategy and measures to implement that strategy, including changes to operations, competitive strengths, goals, expansion and profitable growth of our business and operations, plans, references to future success, including the anticipated benefits of our new business awards and other such matters, are forward-looking statements. Accounting estimates, such as those described under the heading "Critical Accounting Policies and Estimates" in Item 7 of our most recently filed Annual Report on Form 10-K ("Form 10-K"), are inherently forward-looking. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: the success of our portfolio strategy; supply disruptions impacting us or our customers, commodity availability and pricing and an inability to achieve expected levels of recoverability in commercial negotiations with customers concerning these costs; conditions in the automotive industry; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies, including artificial intelligence, and our ability to innovate in response; the difficulty in forecasting demand for electric vehicles and our electric vehicles revenue growth; potential future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; potential disruptions in the global economy caused by wars or other geopolitical conflicts; the ability to identify targets and consummate acquisitions on acceptable terms; failure to realize the expected benefits of acquisitions on a timely basis; the possibility that our 2023 tax-free spin-off of our former Fuel Systems and Aftermarket segments into a separate publicly traded company will not achieve its intended tax benefits; the failure to promptly and effectively integrate acquired businesses; the potential for unknown or inestimable liabilities relating to the acquired businesses; impacts of our exit of the charging business; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the uncertainty surrounding global trade policies, including tariffs and export restrictions and their impact on the Company, its customers and its suppliers; the outcome of existing or any future legal proceedings, including litigation with respect to various claims, or governmental investigations, including related litigation; impacts from any potential future acquisition or disposition transactions; and the other risks discussed in reports that we file with the Securities and Exchange Commission, including in Item 1A. "Risk Factors" in our most recently filed Annual Report on Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

SOURCE BorgWarner

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: BorgWarner (BWA - Free Report) BorgWarner Inc. is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Its products are designed to improve vehicle performance, propulsion efficiency, stability and air quality. The company manufactures and sells these products worldwide, primarily to OEMs of light vehicles, and also supplies OEMs of commercial vehicles and off-highway vehicles. BorgWarner also sells certain products to tier-one vehicle systems suppliers and into the aftermarket.

BWA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 13.26; value investors should take notice.

For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $5.19 per share. BWA boasts an average earnings surprise of +10.7%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, BWA should be on investors' short list.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

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Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

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Stock to Watch: BorgWarner (BWA - Free Report) BorgWarner Inc. is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Its products are designed to improve vehicle performance, propulsion efficiency, stability and air quality. The company manufactures and sells these products worldwide, primarily to OEMs of light vehicles, and also supplies OEMs of commercial vehicles and off-highway vehicles. BorgWarner also sells certain products to tier-one vehicle systems suppliers and into the aftermarket.

BWA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. BWA has a Growth Style Score of B, forecasting year-over-year earnings growth of 5.7% for the current fiscal year.

Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.01 to $5.19 per share. BWA boasts an average earnings surprise of +10.7%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, BWA should be on investors' short list.

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Key Takeaways BorgWarner's Q2 adjusted EPS rose 17.4% to $1.42, beating estimates by 12.7%.Cost controls lifted BWA's adjusted operating margin by 100 basis points to 11.3%.BorgWarner raised 2026 EPS guidance and expanded buyback authorization by $1 billion. BorgWarner Inc. (BWA - Free Report) reported second-quarter 2026 adjusted earnings of $1.42 per share, which rose 17.4% year over year. The figure beat the Zacks Consensus Estimate of $1.26 by 12.7%. Net sales increased 0.3% to $3.65 billion and surpassed the consensus mark of $3.58 billion by 1.8%.

Strong cost controls supported profitability despite lower industry production and weakness in the Battery Energy Systems business. Adjusted operating margin expanded 100 basis points to 11.3%, while organic sales declined 1.2%.

Gross profit rose to $721 million from $640 million in the year-ago quarter. Gross margin improved to 19.8% from 17.6%, reflecting lower cost of sales and disciplined operating execution. Adjusted operating income increased to $413 million from $373 million.

BWA currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BorgWarner's Segmental PerformanceTurbos & Thermal Technologies sales declined 2.6% year over year to $1.44 billion amid lower industry production. Organic sales fell 4.3%. Segment adjusted operating income slipped to $225 million from $227 million.

Drivetrain & Morse Systems revenues increased 1.8% to $1.5 billion, aided by strong North American transfer-case volumes. Adjusted operating income rose to $277 million from $260 million, supported by higher sales and operating execution.

PowerDrive Systems sales grew 14.5% to $665 million, including organic growth of 11.7%. Its adjusted operating loss narrowed to $29 million from $33 million, driven by higher sales.

Battery Energy Systems revenues plunged 37.1% to $100 million due to weaker European demand and the absence of North American incentives. However, the segment’s adjusted operating loss narrowed to $2 million from $12 million, helped by restructuring actions and savings from the charging-business exit.

BWA Builds Its New Business PipelineBorgWarner announced seven awards spanning combustion, hybrid and electric-vehicle technologies. These included an eTurbo program for a European automaker, a torque-on-demand transfer case for a Chinese SUV and two variable cam timing programs.

The company also secured an integrated drive module award using its next-generation three-in-one system. Two high-volume inverter program extensions cover plug-in hybrid and 800-volt battery-electric applications. Production for the announced programs is scheduled to begin between late 2026 and 2029.

BorgWarner Advances Industrial ProductsThe company noted progress in data-center and industrial applications. Testing of its turbine generator achieved California Air Resources Board-level emissions standards, while component certification work is expected to begin in September.

BorgWarner continues to target a 2027 launch and had previously outlined roughly $300 million of turbine-generator revenues for that year. Customer interest includes multiple hyperscalers, and management expects to decide during the second half of 2026 whether additional capacity is needed.

BorgWarner is also developing energy-storage systems, microgrid inverters and power-conversion products. Four customers have received inverter samples, and the company is expanding its portfolio from 400 volts to 1,500 volts. It plans to invest an additional $10-$15 million in industrial research and development during the second half.

BWA Raises Its 2026 Earnings ViewBWA raised its full-year adjusted earnings guidance to $5.05-$5.30 per share from $5-$5.20. The company maintained its sales outlook of $14-$14.3 billion and adjusted operating margin forecast of 10.7%-10.9%. Organic revenues are expected to decline 1.5%-3.5%, including an anticipated $250 million reduction in Battery Energy Systems sales.

BorgWarner's Cash Flow Supports BuybacksSecond-quarter operating cash flow totaled $586 million, while free cash flow was $492 million. For 2026, the company continues to expect operating cash flow of $1.6-$1.7 billion and free cash flow of $900 million-$1.1 billion.

BorgWarner returned about $134 million to shareholders during the quarter through repurchases and dividends. Its board increased the share repurchase authorization by $1 billion, bringing total available authorization to approximately $1.35 billion through 2029. Cash and equivalents were $2.45 billion as of June 30, 2026.

Key Releases From the Auto SpaceGeneral Motors (GM - Free Report) reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.

Tesla, Inc. (TSLA - Free Report) reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years. 

Ford (F - Free Report) reported second-quarter 2026 adjusted earnings of 42 cents per share, beating the Zacks Consensus Estimate of 33 cents by 27.27%. Earnings rose 13.5% from 37 cents a year ago. Automotive revenues of $44.89 billion fell 4.4% year over year and missed the consensus mark of $45.72 billion by 1.81%. Ford’s consolidated second-quarter revenues came in at $48.3 billion, down 3.7% year over year. The company raised its full-year adjusted EBIT outlook to $10-$11 billion from $8.5-$10.5 billion. 

For the quarter ended June 2026, BorgWarner (BWA - Free Report) reported revenue of $3.65 billion, up 0.3% over the same period last year. EPS came in at $1.42, compared to $1.21 in the year-ago quarter.

The reported revenue represents a surprise of +1.77% over the Zacks Consensus Estimate of $3.58 billion. With the consensus EPS estimate being $1.26, the EPS surprise was +12.7%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how BorgWarner performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales- Turbos & Thermal Technologies: $1.44 billion versus $1.44 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -2.6% change.Net Sales- Drivetrain & Morse Systems: $1.46 billion versus $1.45 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +1.8% change.Net Sales- Inter-segment eliminations: $-14 million versus $-14.48 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +16.7% change.Net Sales- Battery & Charging Systems: $100 million versus the two-analyst average estimate of $95.89 million. The reported number represents a year-over-year change of -37.1%.Net Sales- PowerDrive Systems: $665 million compared to the $598.36 million average estimate based on two analysts. The reported number represents a change of +14.5% year over year.Adjusted Operating Income (Loss)- Turbos & Thermal Technologies: $225 million versus the two-analyst average estimate of $222.12 million.Adjusted Operating Income (Loss)- Battery & Charging Systems: $-2 million versus $-11.81 million estimated by two analysts on average.Adjusted Operating Income (Loss)- PowerDrive Systems: $-29 million compared to the $-24.96 million average estimate based on two analysts.Adjusted Operating Income (Loss)- Drivetrain & Morse Systems: $277 million versus the two-analyst average estimate of $271.58 million.View all Key Company Metrics for BorgWarner here>>>

Shares of BorgWarner have returned -1.6% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Posted by Defense World Staff on Aug 5th, 2026

Amundi lowered its holdings in shares of BorgWarner Inc. (NYSE:BWA – Free Report) by 35.6% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 322,961 shares of the auto parts company’s stock after selling 178,856 shares during the quarter. Amundi owned about 0.16% of BorgWarner worth $17,524,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also recently bought and sold shares of BWA. Inspire Investing LLC increased its position in BorgWarner by 2.8% during the fourth quarter. Inspire Investing LLC now owns 7,223 shares of the auto parts company’s stock worth $325,000 after buying an additional 195 shares during the last quarter. Lazard Asset Management LLC lifted its stake in shares of BorgWarner by 1.0% in the fourth quarter. Lazard Asset Management LLC now owns 21,719 shares of the auto parts company’s stock worth $979,000 after buying an additional 206 shares during the last quarter. Arjuna Capital lifted its stake in shares of BorgWarner by 0.6% in the fourth quarter. Arjuna Capital now owns 34,932 shares of the auto parts company’s stock worth $1,574,000 after buying an additional 215 shares during the last quarter. Fifth Third Wealth Advisors LLC boosted its holdings in shares of BorgWarner by 3.2% during the 1st quarter. Fifth Third Wealth Advisors LLC now owns 7,064 shares of the auto parts company’s stock worth $383,000 after buying an additional 216 shares during the period. Finally, Quadrant Capital Group LLC grew its stake in BorgWarner by 0.7% in the 4th quarter. Quadrant Capital Group LLC now owns 34,538 shares of the auto parts company’s stock valued at $1,556,000 after buying an additional 246 shares during the last quarter. 95.67% of the stock is currently owned by institutional investors.

Insider Transactions at BorgWarner In other BorgWarner news, CEO Joseph F. Fadool sold 29,000 shares of BorgWarner stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $67.31, for a total transaction of $1,951,990.00. Following the sale, the chief executive officer owned 405,964 shares in the company, valued at $27,325,436.84. The trade was a 6.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Tania Wingfield sold 5,000 shares of the business’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $63.24, for a total transaction of $316,200.00. Following the completion of the sale, the executive vice president directly owned 35,365 shares in the company, valued at $2,236,482.60. This trade represents a 12.39% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 67,500 shares of company stock valued at $4,310,115 in the last ninety days. 0.76% of the stock is owned by company insiders.

BorgWarner Stock Performance NYSE:BWA opened at $62.80 on Wednesday. The firm’s 50-day moving average is $67.82 and its 200-day moving average is $59.83. The company has a market cap of $12.88 billion, a price-to-earnings ratio of 37.16, a PEG ratio of 1.35 and a beta of 1.10. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.75 and a current ratio of 2.13. BorgWarner Inc. has a 52-week low of $37.59 and a 52-week high of $78.82.

BorgWarner (NYSE:BWA – Get Free Report) last released its earnings results on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share for the quarter, beating the consensus estimate of $1.16 by $0.08. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. The business had revenue of $3.53 billion during the quarter, compared to analysts’ expectations of $3.50 billion. During the same quarter last year, the company earned $1.11 earnings per share. The firm’s revenue was up .5% on a year-over-year basis. Equities research analysts anticipate that BorgWarner Inc. will post 5.16 earnings per share for the current year.

BorgWarner Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be paid a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Tuesday, September 1st. BorgWarner’s dividend payout ratio is presently 40.24%.

Analysts Set New Price Targets A number of research analysts have weighed in on the stock. Wall Street Zen raised shares of BorgWarner from a “hold” rating to a “buy” rating in a research report on Saturday, June 27th. Barclays raised their price target on BorgWarner from $75.00 to $83.00 and gave the company an “overweight” rating in a research report on Thursday, July 9th. Wells Fargo & Company boosted their price objective on BorgWarner from $68.00 to $83.00 and gave the stock an “overweight” rating in a research report on Tuesday, June 2nd. Sanford C. Bernstein upgraded BorgWarner to a “buy” rating in a research note on Wednesday, June 10th. Finally, Weiss Ratings raised BorgWarner from a “hold (c)” rating to a “hold (c+)” rating in a report on Monday, June 29th. Nine equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $74.57.

Get Our Latest Report on BWA

BorgWarner Company Profile (Free Report)

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company’s product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.

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, /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) today reported second quarter results for 2026.

Second Quarter Results and Business Update

BorgWarner's (the "Company") U.S. GAAP net sales increased approximately 0.3%, while organic net sales decreased approximately 1.2%, year-over-year compared with the second quarter of 2025. Excluding the decline in Battery Energy Systems segment sales of approximately $60 million, the Company's organic net sales were up modestly year-over-year. The Company achieved a U.S. GAAP operating margin of 10.1% during the second quarter of 2026, or an increase of 220 basis points, compared with the second quarter of 2025. The Company achieved an adjusted operating margin of 11.3%, or an increase of 100 basis points, compared with the second quarter of 2025. The Company's continued focus on cost controls allowed it to deliver strong performance despite a lower industry production environment. The Company repurchased approximately $100 million of its outstanding shares and paid a $34 million cash dividend to its shareholders during the second quarter of 2026. The Company's Board of Directors authorized an increase to its share repurchase program of $1 billion, bringing the Company's total authorization to approximately $1.35 billion, which is intended to allow management to repurchase the Company's outstanding shares through 2029. The Company continued to make progress in its product readiness across its portfolio offerings for the data center and industrial markets. The Company plans to increase 2026 R&D spending to accelerate these future growth opportunities. New Business Awards Across Portfolio
The Company secured multiple new business awards that are expected to support its long-term profitable growth, including the following:

New eTurbo award with a major European OEM for an advanced hybrid passenger car application. Production is expected to begin in 2029. Torque-on-demand with mechanical lock transfer case award with a Chinese OEM for a newly developed, full-size SUV. Production is expected to begin in the fourth quarter of 2026. Two variable cam timing awards. These include a conquest award with a major Chinese OEM and a program life extension award with a leading European premium OEM. Production is expected to begin in 2026 and 2027, respectively. Integrated Drive Modules (iDM) award with a global OEM. This program utilizes the Company's next-generation iDM technology, setting a new benchmark in performance, efficiency and system integration. Production is expected to begin in 2027. Two high-volume inverter extension awards with a major European OEM for plug-in hybrid and 800V battery-electric vehicles. Production is expected to begin in 2029. Second Quarter Highlights:

U.S. GAAP net sales of $3,648 million, an increase of approximately 0.3% compared with the second quarter of 2025. Excluding the impact of foreign currencies, organic net sales decreased 1.2% compared with the second quarter of 2025. U.S. GAAP net earnings of $1.34 per diluted share. Excluding $0.08 of net losses per diluted share related to non-comparable items (detailed in the table below), adjusted net earnings were $1.42 per diluted share, an increase of 17.4% compared with the second quarter of 2025. U.S. GAAP operating income of $370 million, or 10.1% of net sales. Excluding $43 million of pretax expenses related to non-comparable items, adjusted operating income was $413 million, or 11.3% of net sales. Net cash provided by operating activities of $586 million. Free cash flow of $492 million. Financial Results:
The Company believes the following table is useful in highlighting non-comparable items that impacted its U.S. GAAP net earnings per diluted share. The non-comparable items presented below are calculated after tax using the corresponding effective tax rate discrete to each item and the weighted average number of diluted shares for the periods presented. The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations and related tax effects.

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Earnings per diluted share

$          1.34

$          1.03

$          2.50

$          1.75

Non-comparable items:

Restructuring expense

0.07

0.06

0.13

0.17

Accelerated depreciation

0.03

0.08

0.03

0.08

Adjustments associated with Spin-Off related balances

—

0.01

0.01

(0.01)

Impairment charges

—

0.01

—

0.16

Write-off of customer incentive asset

—

0.03

—

0.03

Costs to exit charging business

—

0.02

—

0.13

Chief Executive Officer ("CEO") transition compensation

—

0.03

—

0.03

Loss on sale of assets

—

0.02

—

0.02

Merger and acquisition expense, net

—

—

(0.01)

0.01

Unrealized gain on equity securities

(0.02)

—

(0.01)

—

Tax adjustments

(0.01)

(0.08)

—

(0.06)

Other non-comparable items

0.01

—

0.01

0.01

Adjusted earnings per diluted share

$          1.42

$          1.21

$          2.66

$          2.32

Net sales were $3,648 million for the second quarter of 2026, an increase of approximately 0.3% compared with the second quarter of 2025. This increase was due to stronger foreign currencies compared to the U.S. dollar, partially offset by declining market production volumes and lower Battery Energy Systems segment sales. Net earnings for the second quarter of 2026 were $277 million, compared with net earnings of $224 million for the second quarter of 2025. Net earnings per share for the second quarter of 2026 were $1.34 per diluted share, up 30.1% from $1.03 per diluted share for the second quarter of 2025. Adjusted net earnings per diluted share for the second quarter of 2026 were $1.42, up 17.4% from adjusted net earnings per diluted share of $1.21 for the second quarter of 2025. Adjusted net earnings for the second quarter of 2026 excluded net non-comparable items of $(0.08) per diluted share, while adjusted net earnings for the second quarter of 2025 excluded net non-comparable items of $(0.18) per diluted share. These and other non-comparable items are listed in the table above, which is provided by the Company for comparison with other results and the most directly comparable U.S. GAAP measures. The increase in adjusted net earnings per diluted share was primarily due to higher adjusted operating income and the impact of a lower share count as a result of 2025 and 2026 share repurchases.

Full Year 2026 Guidance Update: The Company increased its 2026 full year adjusted earnings per share guidance, while maintaining its sales, adjusted operating margin and cash flow expectations.

At the mid-point of its 2026 guidance, the Company expects to deliver another year of adjusted operating margin improvement and adjusted earnings per share growth despite the Company's expectation that its weighted light vehicle markets will be down 3% to approximately flat and a decline in the Company's Battery Energy Systems segment sales. Net sales are expected to be in the range of $14.0 billion to $14.3 billion in 2026, compared with 2025 net sales of approximately $14.3 billion. The Company's net sales guidance implies a year-over-year change in organic net sales of down 3.5% to down 1.5%. The Company's net sales guidance includes an expected year-over-year sales decline of approximately $250 million in the Company's Battery Energy Systems segment, which represents approximately a 1.7% headwind to organic net sales growth in 2026. Foreign currencies are expected to result in a year-over-year increase in sales of approximately $175 million primarily due to the strengthening of the Euro and Chinese Renminbi against the U.S. dollar.

U.S. GAAP operating margin is expected to be in the range of 9.6% to 9.8% in 2026. Excluding the impact of non-comparable items and the add back of intangible asset amortization expense, adjusted operating margin is expected to be in the range of 10.7% to 10.9%. U.S. GAAP net earnings are expected to be within the range of $4.72 to $4.94 per diluted share. Excluding the impact of non-comparable items, adjusted net earnings are expected to be in the range of $5.05 to $5.30 per diluted share, compared to the Company's previous adjusted net earnings range of $5.00 to $5.20 per diluted share. The increase is due to the impact of the Company's share repurchases during the first half of 2026. Full year operating cash flow is expected to be in the range of $1,600 million to $1,700 million, while free cash flow is expected to be in the range of $900 million to $1,100 million.

At 9:30 a.m. ET today, a brief conference call concerning second quarter 2026 results and full year guidance will be webcast at: https://www.borgwarner.com/investors. Additionally, an earnings call presentation will be available at https://www.borgwarner.com/investors. 

For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all.

Forward Looking Statements: This release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact, contained or incorporated by reference in this release that we expect or anticipate will or may occur in the future regarding our financial position, including our guidance for full year 2026, our business strategy and measures to implement that strategy, including changes to operations, competitive strengths, goals, expansion and profitable growth of our business and operations, plans, references to future success, including the anticipated benefits of increased investments in research and development, our new business awards and other such matters, are forward-looking statements. Accounting estimates, such as those described under the heading "Critical Accounting Policies and Estimates" in Item 7 of our most recently filed Annual Report on Form 10-K ("Form 10-K"), are inherently forward-looking. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: the success of our portfolio strategy; supply disruptions impacting us or our customers, commodity availability and pricing and an inability to achieve expected levels of recoverability in commercial negotiations with customers concerning these costs; conditions in the automotive industry; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies, including artificial intelligence, and our ability to innovate in response; the difficulty in forecasting demand for electric vehicles and our electric vehicles revenue growth; potential future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; potential disruptions in the global economy caused by wars or other geopolitical conflicts; the ability to identify targets and consummate acquisitions on acceptable terms; failure to realize the expected benefits of acquisitions on a timely basis; the possibility that our 2023 tax-free spin-off of our former Fuel Systems and Aftermarket segments into a separate publicly traded company will not achieve its intended tax benefits; the failure to promptly and effectively integrate acquired businesses; the potential for unknown or inestimable liabilities relating to the acquired businesses; impacts of our exit of the charging business; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the uncertainty surrounding global trade policies, including tariffs (and any potential refund recovery of tariffs imposed under the International Emergency Economic Powers Act) and export restrictions and their impact on the Company, its customers and its suppliers; the outcome of existing or any future legal proceedings, including litigation with respect to various claims, or governmental investigations, including related litigation; impacts from any potential future acquisition or disposition transactions; and the other risks discussed in reports that we file with the Securities and Exchange Commission, including in Item 1A. "Risk Factors" in our most recently filed Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

BorgWarner Inc.

Condensed Consolidated Statements of Operations (Unaudited)

(in millions, except per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net sales

$       3,648

$       3,638

$       7,181

$       7,153

Cost of sales

2,927

2,998

5,783

5,874

Gross profit

721

640

1,398

1,279

Gross margin

19.8 %

17.6 %

19.5 %

17.9 %

Selling, general and administrative expenses

331

317

659

632

Restructuring expense

21

17

39

48

Other operating (income) expense, net

(1)

14

(6)

31

Impairment charges

—

3

—

42

Operating income

370

289

706

526

Equity in affiliates' earnings, net of tax

(10)

(8)

(16)

(18)

Unrealized gain on equity securities

(4)

(1)

(3)

(1)

Interest expense, net

10

12

21

24

Other postretirement expense

2

2

4

5

Earnings before income taxes and noncontrolling interest

372

284

700

516

Provision for income taxes

81

52

154

113

Net earnings

291

232

546

403

Net earnings attributable to noncontrolling interest

14

8

27

22

Net earnings attributable to BorgWarner Inc. 

$         277

$         224

$         519

$         381

Earnings per share attributable to BorgWarner Inc. — diluted

$        1.34

$        1.03

$        2.50

$        1.75

Weighted average shares outstanding:

Basic

203.0

216.3

204.2

216.7

Diluted

206.3

218.2

207.3

218.1

BorgWarner Inc.

Net Sales by Reportable Segment (Unaudited)

(in millions)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Turbos & Thermal Technologies

$         1,442

$         1,481

$         2,875

$         2,935

Drivetrain & Morse Systems

1,455

1,429

2,877

2,790

PowerDrive Systems

665

581

1,252

1,142

Battery Energy Systems

100

159

202

309

Inter-segment eliminations

(14)

(12)

(25)

(23)

Net sales

$         3,648

$         3,638

$         7,181

$         7,153

Segment Adjusted Operating Income (Loss) (Unaudited)

(in millions)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Turbos & Thermal Technologies

$           225

$           227

$           439

$           462

Drivetrain & Morse Systems

277

260

537

503

PowerDrive Systems

(29)

(33)

(65)

(76)

Battery Energy Systems

(2)

(12)

(4)

(34)

Segment Adjusted Operating Income

471

442

907

855

Corporate, including stock-based compensation

58

69

122

130

Restructuring expense

21

17

39

48

Intangible asset amortization expense

14

16

30

33

Accelerated depreciation

7

21

9

21

Adjustments associated with Spin-Off related balances

(1)

2

1

(1)

Impairment charges

—

3

—

42

Write-off of customer incentive asset

—

7

—

7

Costs to exit charging business

—

6

—

32

Chief Executive Officer ("CEO") transition compensation

—

6

—

6

Loss on sale of assets

—

5

—

5

Loss on sale of businesses

—

—

—

1

Merger and acquisition expense, net

—

—

(2)

2

Other non-comparable items

2

1

2

3

Equity in affiliates' earnings, net of tax

(10)

(8)

(16)

(18)

Unrealized gain on equity securities

(4)

(1)

(3)

(1)

Interest expense, net

10

12

21

24

Other postretirement expense

2

2

4

5

Earnings before income taxes and noncontrolling interest

$           372

$           284

$           700

$           516

Provision for income taxes

81

52

154

113

Net earnings

291

232

546

403

Net earnings attributable to noncontrolling interest

14

8

27

22

Net earnings attributable to BorgWarner Inc.

$           277

$           224

$           519

$           381

BorgWarner Inc.

Condensed Consolidated Balance Sheets (Unaudited)

(in millions)

June 30,
2026

December 31,
2025

ASSETS

Cash and cash equivalents

$         2,448

$         2,313

Receivables, net

3,056

2,962

Inventories

1,232

1,207

Prepayments and other current assets

352

313

Total current assets

7,088

6,795

Property, plant and equipment, net

3,220

3,330

Other non-current assets

3,626

3,644

Total assets

$       13,934

$       13,769

LIABILITIES AND EQUITY

Short-term debt

$              5

$              5

Accounts payable

2,138

1,996

Other current liabilities

1,190

1,281

Total current liabilities

3,333

3,282

Long-term debt

3,863

3,894

Other non-current liabilities:

940

979

Total liabilities

8,136

8,155

Total BorgWarner Inc. stockholders' equity

5,621

5,442

Noncontrolling interest

177

172

Total equity

5,798

5,614

Total liabilities and equity

$       13,934

$       13,769

BorgWarner Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in millions)

Six Months Ended June 30,

2026

2025

OPERATING ACTIVITIES

Net cash provided by operating activities

$           738

$           661

INVESTING ACTIVITIES

Capital expenditures, including tooling outlays

(239)

(196)

Customer advances related to capital expenditures

6

7

Proceeds from settlement of net investment hedges, net

9

8

Payments for investments in equity securities

(2)

—

Proceeds from the sale of business, net

—

7

Proceeds from asset disposals and other, net

1

16

Net cash used in investing activities

(225)

(158)

FINANCING ACTIVITIES

Payments of notes payable

—

(5)

Repayments of debt, including current portion

(3)

(403)

Payments for purchase of treasury stock

(250)

(108)

Payments for excise tax on purchase of treasury stock

(5)

—

Payments for stock-based compensation items

(28)

(18)

Payment for business acquired, net of cash acquired

(3)

—

Payments for contingent consideration

—

(4)

Dividends paid to BorgWarner stockholders

(69)

(48)

Dividends paid to noncontrolling stockholders

(10)

(20)

Net cash used in financing activities

(368)

(606)

Effect of exchange rate changes on cash

(10)

50

Net increase (decrease) in cash and cash equivalents

135

(53)

Cash and cash equivalents at beginning of year

2,313

2,094

Cash, cash equivalents and restricted cash at end of period

$         2,448

$         2,041

Supplemental Information (Unaudited)

(in millions)

Six Months Ended June 30,

2026

2025

Depreciation and tooling amortization

$           264

$           301

Intangible asset amortization

$             30

$             33

Non-GAAP Financial Measures
This press release contains information about the Company's financial results that is not presented in accordance with U.S. GAAP. Such non-GAAP financial measures are reconciled to their closest U.S. GAAP financial measures below and in the Financial Results table above. The provision of these comparable U.S. GAAP financial measures for 2026 is not intended to indicate that the Company is explicitly or implicitly providing projections on those U.S. GAAP financial measures and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this press release and the adjustments that management can reasonably predict.

Management believes that these non-GAAP financial measures are useful to management, investors and banking institutions in their analyses of the Company's business and operating performance. Management also uses this information for operational planning and decision-making purposes.

Non-GAAP financial measures are not and should not be considered a substitute for any U.S. GAAP measure. Additionally, because not all companies use identical calculations, the non-GAAP financial measures as presented by the Company may not be comparable to similarly titled measures reported by other companies.

Adjusted Operating Income and Adjusted Operating Margin
The Company defines adjusted operating income as operating income adjusted to exclude the impact of restructuring expense, merger, acquisition and divestiture expense, intangible asset amortization expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations. Adjusted operating margin is defined as adjusted operating income divided by net sales.

Adjusted Net Earnings
The Company defines adjusted net earnings as net earnings attributable to the Company, adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations and related tax effects. The impact of intangible asset amortization expense continues to be included in adjusted net earnings.

Adjusted Earnings per Diluted Share
The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations and related tax effects. The impact of intangible asset amortization expense continues to be included in adjusted earnings per share.

Free Cash Flow
The Company defines free cash flow as net cash provided by operating activities minus capital expenditures, net of customer advances related to capital expenditures. The Company believes this measure is useful to both management and investors in evaluating the Company's ability to service and repay its debt.

Organic Net Sales Change
The Company defines organic net sales changes as net sales change year-over-year excluding the estimated impact of foreign exchange ("FX") and net mergers, acquisitions and divestitures.

Adjusted Operating Income and Adjusted Operating Margin (Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

(in millions)

2026

2025

2026

2025

Net sales

$      3,648

$      3,638

$       7,181

$       7,153

Operating income

$         370

$         289

$         706

$         526

Operating margin

10.1 %

7.9 %

9.8 %

7.4 %

Non-comparable items:

Restructuring expense

$           21

$           17

$           39

$           48

Intangible asset amortization expense

14

16

30

33

Accelerated depreciation

7

21

9

21

Adjustments associated with Spin-Off related balances

(1)

2

1

(1)

Impairment charges

—

3

—

42

Costs to exit charging business

—

6

—

32

Chief Executive Officer ("CEO") transition compensation

—

6

—

6

Write-off of customer incentive asset

—

7

—

7

Loss on sale of assets

—

5

—

5

Loss on sale of businesses

—

—

—

1

Merger and acquisition expense, net

—

—

(2)

2

Other non-comparable items

2

1

2

3

Adjusted operating income

$         413

$         373

$         785

$         725

Adjusted operating margin

11.3 %

10.3 %

10.9 %

10.1 %

Free Cash Flow Reconciliation (Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

(in millions)

2026

2025

2026

2025

Net cash provided by operating activities

$           586

$           579

$           738

$           661

Capital expenditures, including tooling outlays

(96)

(77)

(239)

(196)

Customer advances related to capital expenditures

2

5

6

7

Free cash flow

$           492

$           507

$           505

$           472

Second Quarter 2026 Organic Net Sales Change (Unaudited)

(in millions)

Q2 2025
Net Sales

FX

Organic
Net Sales
Change

Q2 2026
Net Sales

Organic
Net Sales
Change %

Turbos & Thermal Technologies

$  1,481

$      24

$    (63)

$   1,442

(4.3) %

Drivetrain & Morse Systems

1,429

11

15

1,455

1.0 %

PowerDrive Systems

581

16

68

665

11.7 %

Battery Energy Systems

159

3

(62)

100

(39.0) %

Inter-segment eliminations

(12)

—

(2)

(14)

16.7 %

Net sales

$  3,638

$      54

$    (44)

$  3,648

(1.2) %

Year to Date 2026 Organic Net Sales Change (Unaudited)

(in millions)

Q2 2025
YTD Net
Sales

FX

Organic
Net Sales
Change

Q2 2026
YTD Net
Sales

Organic
Net Sales
Change %

Turbos & Thermal Technologies

$  2,935

$    105

$  (165)

$  2,875

(5.6) %

Drivetrain & Morse Systems

2,790

60

27

2,877

1.0 %

PowerDrive Systems

1,142

47

63

1,252

5.5 %

Battery Energy Systems

309

9

(116)

202

(37.5) %

Inter-segment eliminations

(23)

—

(2)

(25)

8.7 %

Total

$  7,153

$    221

$  (193)

$  7,181

(2.7) %

Adjusted Operating Income and Adjusted Operating Margin Guidance Reconciliation (Unaudited)

Full Year 2026 Guidance

(in millions)

Low

High

Net sales

$     14,000

$     14,300

Operating income

$       1,343

$       1,398

Operating margin

9.6 %

9.8 %

Non-comparable items:

Restructuring expense

$           90

$         100

Intangible asset amortization

57

57

Accelerated depreciation

9

9

Adjustment associated with Spin-Off related balances

1

1

Merger and acquisition expense, net

(2)

(2)

Other non-comparable items

2

2

Adjusted operating income

$       1,500

$       1,565

Adjusted operating margin

10.7 %

10.9 %

Adjusted Earnings Per Diluted Share Guidance Reconciliation (Unaudited)

Full Year 2026 Guidance

Low

High

Earnings per Diluted Share

$          4.72

$          4.94

Non-comparable items:

Restructuring expense

$          0.30

$          0.33

Accelerated depreciation

0.03

0.03

Adjustment associated with Spin-Off related balances

0.01

0.01

Unrealized gain on equity securities

(0.01)

(0.01)

Merger and acquisition expense, net

(0.01)

(0.01)

Other non-comparable items

0.01

0.01

Adjusted Earnings per Diluted Share

$          5.05

$          5.30

Free Cash Flow Guidance Reconciliation (Unaudited)

Full Year 2026 Guidance

(in millions)

Low

High

Net cash provided by operating activities

$        1,600

$        1,700

Capital expenditures, including tooling outlays

(700)

(600)

Free cash flow

$           900

$        1,100

Full Year 2026 Organic Net Sales Change Guidance Reconciliation (Unaudited)

(in millions)

FY 2025 Net
Sales

FX

Battery
Energy
Systems
("BES")
Sales
Change

Organic Net
Sales
Change

FY 2026 Net
Sales

Organic Net
Sales
Change
Excluding
BES %

Organic Net
Sales
Change
Including
BES %

BorgWarner
LV
Weighted
Market %

Low

$  14,316

$      175

$    (250)

$    (241)

$  14,000

(1.7) %

(3.4) %

(3.0) %

High

$  14,316

$      175

$    (250)

$       59

$  14,300

0.4 %

(1.3) %

— %

Full Year 2026 Estimated Year-Over-Year Change in Production (Unaudited)

North America

Europe

China

Total

BorgWarner
Weighted Total

Light vehicle

(2.5)% to 1.5%

(2)% to 1%

(7)% to (4)%

(3)% to (1)%

(3)% to 0%

SOURCE BorgWarner

, /PRNewswire/ -- BorgWarner Inc. ("BorgWarner") announced today that Rajesh Kalathur has been appointed to its Board of Directors.

"We are pleased to welcome Raj to BorgWarner's Board of Directors," said Alexis P. Michas, Non-Executive Chairman of the Board of BorgWarner. "Raj's extensive global leadership experience across finance, information technology, operations, and sales will be invaluable to our Board."

BorgWarner Appoints Rajesh Kalathur to its Board of Directors Mr. Kalathur most recently served as President of John Deere Financial and Chief Information Officer of Deere & Company, a global leader in the production of agricultural, construction, forestry, turf, power systems, and other solutions, which he joined in 1996 and from which he retired in 2026. In these roles, he led Deere & Company's financial services business segment with more than $70 billion in assets and oversaw enterprise-wide global information technology and cybersecurity functions. Prior to these roles, Mr. Kalathur served as Deere & Company's Chief Financial Officer for more than six years.

Mr. Kalathur holds a Bachelor of Science in Mechanical Engineering from the National Institute of Technology in Jamshedpur, India, a Master of Science in Industrial Engineering from the University of Alabama, and a Master of Business Administration from the University of Chicago's Booth School of Business.

About BorgWarner
For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all.

SOURCE BorgWarner

New eTurbo™ program expands BorgWarner's electrified boosting business with a major OEM New generation features remote power electronics for greater integration flexibility Delivers 20 kW of continuous electrical power and up to 30 kW peak, providing instant power and enabling energy recuperation , /PRNewswire/ -- BorgWarner has been awarded a new eTurbo™ program with a major European OEM for an advanced hybrid passenger car application, further strengthening BorgWarner's leading position in electrified boosting technologies. Production is scheduled to begin in 2029.

BorgWarner Secures New eTurbo™ Program with Major European OEM "This new award underlines the strength of our eTurbo™ technology and the trust our customers place in BorgWarner's electrified boosting solutions," said Dr. Volker Weng, President and General Manager, BorgWarner Turbos and Thermal Technologies. "By continuing to evolve our proven 400-volt eTurbo™ platform, we are helping our customers meet some of the industry's most demanding requirements for performance, efficiency and emissions compliance."

The BorgWarner eTurbo™ is an electrically assisted turbocharger that integrates a high-speed electric motor directly on the turbo shaft to actively drive the compressor. The system eliminates turbo lag, enables significantly faster boost pressure build-up, and delivers 20 kW of continuous electrical power and up to 30 kW peak for both performance enhancement and energy recuperation. Excess exhaust energy is converted into electrical energy and fed back into the vehicle's high-voltage system rather than being lost through a conventional wastegate.

The new program is based on a continuous evolution of BorgWarner's proven eTurbo™ platform currently in series production. A key new feature is the introduction of remote power electronics, which allow flexible positioning within the vehicle and engine compartment, supporting integration into the most challenging packaging environments. Designed for operating speeds of up to 145,000 rpm and exhaust gas temperatures above 1,000°C, the system combines advanced cooling strategies with high-performance silicon carbide based power electronics to ensure efficiency, durability and reliability under the most demanding operating conditions.

Beyond performance, the eTurbo™ plays an important role in helping automakers meet upcoming emissions regulations such as Euro 7 (EU7), Super Ultra-Low Emission Vehicle (SULEV), and China National 6b Emissions Standards (C6b) by eliminating fuel enrichment at high load, reducing exhaust backpressure and converting otherwise lost exhaust energy into usable electrical power. With proven series production and extensive field experience, BorgWarner remains the only supplier offering a 400-volt eTurbo™ in series.

About BorgWarner
For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all. 

Forward-Looking Statements: This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact contained or incorporated by reference in this press release that we expect or anticipate will or may occur in the future regarding our business strategy, competitive strengths, goals, expansion and growth of our business and operations, plans, references to future success and other such matters, are forward-looking statements. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: the possibility that our turbocharging technology will not achieve their intended benefits; the supply disruptions impacting us or our customers, commodity availability and pricing; conditions in the automotive industry; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies, including artificial intelligence, and our ability to innovate in response; potential future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; potential disruptions in the global economy caused by wars or other geopolitical conflicts; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the uncertainty surrounding global trade policies, including tariffs and export restrictions, and their impacts on the Company, its customers and its suppliers; the outcome of existing or any future legal proceedings, including litigation with respect to various claims, or governmental investigations, including related litigations; impacts from any potential future acquisition or disposition transactions; and the other risks discussed in reports that we file with the Securities and Exchange Commission, including in Item 1A, "Risk Factors" in our most recently-filed Annual Report on Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

SOURCE BorgWarner

Wall Street expects a year-over-year increase in earnings on lower revenues when BorgWarner (BWA - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis auto parts supplier is expected to post quarterly earnings of $1.26 per share in its upcoming report, which represents a year-over-year change of +4.1%.

Revenues are expected to be $3.58 billion, down 1.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.44% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for BorgWarner?For BorgWarner, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.62%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that BorgWarner will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that BorgWarner would post earnings of $1.16 per share when it actually produced earnings of $1.24, delivering a surprise of +6.90%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

BorgWarner doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Posted by Defense World Staff on Jul 27th, 2026

Entropy Technologies LP lessened its stake in BorgWarner Inc. (NYSE:BWA – Free Report) by 20.4% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 44,380 shares of the auto parts company’s stock after selling 11,376 shares during the quarter. Entropy Technologies LP’s holdings in BorgWarner were worth $2,408,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in BWA. AQR Capital Management LLC increased its stake in shares of BorgWarner by 119.7% in the 3rd quarter. AQR Capital Management LLC now owns 7,518,776 shares of the auto parts company’s stock valued at $330,525,000 after acquiring an additional 4,095,902 shares during the last quarter. Norges Bank acquired a new stake in shares of BorgWarner in the 4th quarter valued at approximately $156,794,000. Millennium Management LLC boosted its stake in BorgWarner by 94.5% during the 4th quarter. Millennium Management LLC now owns 2,100,815 shares of the auto parts company’s stock worth $94,663,000 after acquiring an additional 1,020,726 shares during the last quarter. SEB Asset Management AB bought a new position in BorgWarner during the 1st quarter worth approximately $50,930,000. Finally, Adage Capital Partners GP L.L.C. grew its holdings in BorgWarner by 233.6% during the second quarter. Adage Capital Partners GP L.L.C. now owns 1,111,000 shares of the auto parts company’s stock valued at $37,196,000 after purchasing an additional 778,000 shares during the period. Institutional investors own 95.67% of the company’s stock.

Insider Transactions at BorgWarner In related news, VP Isabelle Mckenzie sold 3,500 shares of the stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $63.35, for a total transaction of $221,725.00. Following the completion of the transaction, the vice president directly owned 57,828 shares in the company, valued at approximately $3,663,403.80. This trade represents a 5.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Tania Wingfield sold 5,000 shares of the business’s stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $63.24, for a total value of $316,200.00. Following the completion of the sale, the executive vice president owned 35,365 shares in the company, valued at $2,236,482.60. The trade was a 12.39% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 67,500 shares of company stock valued at $4,310,115. 0.76% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth Several equities research analysts have commented on the stock. JPMorgan Chase & Co. upped their target price on shares of BorgWarner from $73.00 to $75.00 and gave the company an “overweight” rating in a research note on Thursday, May 14th. Weiss Ratings raised shares of BorgWarner from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday, June 29th. Barclays boosted their price target on shares of BorgWarner from $75.00 to $83.00 and gave the company an “overweight” rating in a report on Thursday, July 9th. UBS Group upgraded shares of BorgWarner from a “neutral” rating to a “buy” rating and upped their price objective for the company from $61.00 to $95.00 in a research report on Wednesday, June 10th. Finally, Deutsche Bank Aktiengesellschaft set a $81.00 target price on BorgWarner in a report on Tuesday, April 21st. Nine research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, BorgWarner presently has a consensus rating of “Moderate Buy” and a consensus price target of $74.57.

Read Our Latest Analysis on BorgWarner

BorgWarner Price Performance NYSE BWA opened at $64.41 on Monday. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.75 and a current ratio of 2.13. The stock has a market cap of $13.21 billion, a price-to-earnings ratio of 38.11, a PEG ratio of 1.38 and a beta of 1.09. The business has a 50 day simple moving average of $67.94 and a 200 day simple moving average of $59.06. BorgWarner Inc. has a 52-week low of $34.27 and a 52-week high of $78.82.

BorgWarner (NYSE:BWA – Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share for the quarter, beating analysts’ consensus estimates of $1.16 by $0.08. The firm had revenue of $3.53 billion for the quarter, compared to analyst estimates of $3.50 billion. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. The business’s revenue was up .5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.11 earnings per share. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. Analysts anticipate that BorgWarner Inc. will post 5.16 earnings per share for the current fiscal year.

BorgWarner Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 1st were given a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Monday, June 1st. BorgWarner’s payout ratio is currently 40.24%.

BorgWarner Profile (Free Report)

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company’s product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.

Further Reading Five stocks we like better than BorgWarner RTX and Lockheed Earnings: Can Strong Guidance Reset the Defense Trade? These 4 Earnings Reports Expose the Market’s Growing Economic Divide Broadcom May Be the Biggest Winner From Alphabet’s Earnings Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Want to see what other hedge funds are holding BWA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for BorgWarner Inc. (NYSE:BWA – Free Report).

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Integrated Dual-Clutch Transmission (DCT) system targets motorcycle and four-wheeled vehicle applications above 500 cc Technology improves fuel economy and enhances the riding experience BorgWarner upgrades from key component supplier to systems solution provider , /PRNewswire/ -- BorgWarner has secured a new DCT program with a Chinese motorcycle customer, with start of production planned for the third quarter of 2027. Under the program, BorgWarner will provide a systems solution that includes dual clutches, hydraulic control modules and clutch control software for two-wheeled motorcycles and four-wheeled vehicles with engine displacement above 500 cc.           

As the motorcycle industry accelerates its shift toward automatic transmissions, DCT technology is increasingly gaining attention in the market. Compared with automated manual transmission (AMT) and continuously variable transmission (CVT) technologies, DCT offers smoother shifting and higher transmission efficiency, making it particularly suitable for larger-displacement performance motorcycles.

"Passenger car transmission technology provides a strong reference point for the evolution of motorcycle automatic transmissions, and we believe automatic transmission technology will continue to gain momentum in the motorcycle market," said Henk Vanthournout, Vice President of BorgWarner Inc. and President and General Manager, Drivetrain and Morse Systems. "With our proven DCT expertise and systems integration capabilities, BorgWarner is well positioned to support our Chinese motorcycle customer in bringing its DCT solution to production and advancing automatic transmission technology for motorcycle applications."

As a global leader in DCT technology, BorgWarner has delivered nearly 10 million passenger car DCT units, backed by proven engineering expertise and mature manufacturing capabilities. Leveraging this foundation, BorgWarner is well positioned to develop and launch a dedicated motorcycle DCT system that helps enhance the riding experience and improve fuel economy.

This program reflects BorgWarner's evolution from a key component supplier to a system-level solution provider. Through an integrated offering that combines hardware and software, BorgWarner will support the customer's continued growth in China while helping enable its expansion into Europe, North America and other overseas markets.

About BorgWarner

For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all.

Forward Looking Statements: This release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact, contained or incorporated by reference in this release that we expect or anticipate will or may occur in the future regarding our business strategy, goals, plans, references to future success and other such matters, are forward-looking statements. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: the possibility that our dual-clutch transmission programs will not achieve its intended benefits; the supply disruptions impacting us or our customers, commodity availability and pricing; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies, including artificial intelligence, and our ability to innovate in response; potential future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; potential disruptions in the global economy caused by wars or other geopolitical conflicts; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the uncertainty surrounding global trade policies, including tariffs and export restrictions, and their impacts on the Company, its customers and its suppliers; the outcome of existing of any future legal proceedings, including litigation with respect to various claims, or governmental investigations, including related litigation; impacts from any potential future acquisition or disposition transaction; and the other risks discussed in reports that we file with the Securities and Exchange Commission, including in Item 1A, "Risk Factors" in our most recently-filed Annual Report on Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

SOURCE BorgWarner

California Public Employees Retirement System increased its position in shares of BorgWarner Inc. (NYSE:BWA – Free Report) by 12.4% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 532,927 shares of the auto parts company’s stock after acquiring an additional 58,960 shares during the period. California Public Employees Retirement System owned about 0.26% of BorgWarner worth $28,917,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Dimensional Fund Advisors LP increased its stake in BorgWarner by 1.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 11,961,482 shares of the auto parts company’s stock worth $538,996,000 after purchasing an additional 178,853 shares during the period. AQR Capital Management LLC boosted its stake in shares of BorgWarner by 22.7% in the fourth quarter. AQR Capital Management LLC now owns 9,222,352 shares of the auto parts company’s stock valued at $415,559,000 after purchasing an additional 1,703,576 shares during the period. State Street Corp grew its holdings in shares of BorgWarner by 5.3% in the second quarter. State Street Corp now owns 7,633,760 shares of the auto parts company’s stock valued at $255,578,000 after purchasing an additional 380,942 shares in the last quarter. LSV Asset Management increased its stake in BorgWarner by 6.7% during the 4th quarter. LSV Asset Management now owns 6,446,541 shares of the auto parts company’s stock worth $290,481,000 after buying an additional 402,887 shares during the period. Finally, Geode Capital Management LLC increased its stake in BorgWarner by 10.9% during the 4th quarter. Geode Capital Management LLC now owns 4,297,717 shares of the auto parts company’s stock worth $193,695,000 after buying an additional 423,933 shares during the period. 95.67% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets In other news, VP Isabelle Mckenzie sold 3,500 shares of the stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $63.35, for a total value of $221,725.00. Following the transaction, the vice president owned 57,828 shares in the company, valued at approximately $3,663,403.80. This represents a 5.71% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Tania Wingfield sold 5,000 shares of the firm’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $63.24, for a total value of $316,200.00. Following the sale, the executive vice president directly owned 35,365 shares in the company, valued at $2,236,482.60. This trade represents a 12.39% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 67,500 shares of company stock valued at $4,310,115. 0.76% of the stock is owned by insiders.

BorgWarner Trading Up 3.2% Shares of NYSE:BWA opened at $63.60 on Wednesday. BorgWarner Inc. has a 52 week low of $34.27 and a 52 week high of $78.82. The company’s 50 day moving average is $68.03 and its two-hundred day moving average is $58.69. The company has a market cap of $13.05 billion, a PE ratio of 37.63, a P/E/G ratio of 1.32 and a beta of 1.09. The company has a current ratio of 2.13, a quick ratio of 1.75 and a debt-to-equity ratio of 0.69.

BorgWarner (NYSE:BWA – Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The auto parts company reported $1.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.16 by $0.08. The business had revenue of $3.53 billion during the quarter, compared to analysts’ expectations of $3.50 billion. BorgWarner had a net margin of 2.53% and a return on equity of 18.36%. The company’s revenue for the quarter was up .5% on a year-over-year basis. During the same period in the previous year, the company earned $1.11 EPS. BorgWarner has set its FY 2026 guidance at 5.000-5.200 EPS. Equities analysts predict that BorgWarner Inc. will post 5.16 earnings per share for the current fiscal year.

BorgWarner Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 1st were given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend was Monday, June 1st. BorgWarner’s dividend payout ratio is currently 40.24%.

Analysts Set New Price Targets Several research firms have commented on BWA. Morgan Stanley boosted their price target on shares of BorgWarner from $60.00 to $67.00 and gave the stock an “equal weight” rating in a research note on Wednesday, May 27th. Wolfe Research reiterated an “outperform” rating and issued a $95.00 price objective on shares of BorgWarner in a research note on Wednesday, June 3rd. TD Cowen lifted their target price on BorgWarner from $66.00 to $67.00 and gave the company a “hold” rating in a report on Thursday, May 7th. UBS Group raised BorgWarner from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $61.00 to $95.00 in a research note on Wednesday, June 10th. Finally, Barclays upped their price target on BorgWarner from $75.00 to $83.00 and gave the stock an “overweight” rating in a report on Thursday, July 9th. Nine research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $74.57.

View Our Latest Analysis on BWA

BorgWarner Profile (Free Report)

BorgWarner Inc is a global automotive supplier specializing in propulsion and drivetrain solutions for combustion, hybrid and electric vehicles. The company’s product portfolio includes turbochargers, thermal management systems, transmission components, e-Propulsion modules and advanced fuel-efficiency technologies. BorgWarner serves original equipment manufacturers (OEMs) across passenger cars, light trucks and commercial vehicles, supporting both legacy internal-combustion engines and emerging electrification trends.

Founded in 1928 through the merger of several driveline companies, BorgWarner has grown through strategic acquisitions and continuous investment in research and development.

Further Reading Five stocks we like better than BorgWarner Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible

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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? BorgWarner (BWA - Free Report) , which belongs to the Zacks Automotive - Original Equipment industry, could be a great candidate to consider.

This auto parts supplier has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 11.64%.

For the last reported quarter, BorgWarner came out with earnings of $1.24 per share versus the Zacks Consensus Estimate of $1.16 per share, representing a surprise of 6.90%. For the previous quarter, the company was expected to post earnings of $1.16 per share and it actually produced earnings of $1.35 per share, delivering a surprise of 16.38%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for BorgWarner. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

BorgWarner currently has an Earnings ESP of +4.85%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on August 5, 2026.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

AUBURN HILLS, Mich., June 23, 2026 /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) announces the following Webcast:

What:           BorgWarner 2026 Second Quarter Results Conference Call
When:          August 5, 2026 @ 9:30am Eastern Time
Where:         www.borgwarner.com/investors  
How:            Live over the Internet -- Simply log on to the web at the address above.

If you are unable to participate during the live webcast, the call will be archived at (www.borgwarner.com/investors)

For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all.

WEB SITE:    http://www.borgwarner.com

SOURCE BorgWarner

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To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: BorgWarner (BWA - Free Report) BorgWarner Inc. is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Its products are designed to improve vehicle performance, propulsion efficiency, stability and air quality. The company manufactures and sells these products worldwide, primarily to OEMs of light vehicles, and also supplies OEMs of commercial vehicles and off-highway vehicles. BorgWarner also sells certain products to tier-one vehicle systems suppliers and into the aftermarket.

BWA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. BWA has a Growth Style Score of A, forecasting year-over-year earnings growth of 5.5% for the current fiscal year.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.04 to $5.18 per share. BWA also boasts an average earnings surprise of +11.1%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, BWA should be on investors' short list.

AUBURN HILLS, Mich., April 30, 2026 /PRNewswire/ -- On April 29, 2026, the Board of Directors of BorgWarner Inc. (NYSE: BWA) declared a quarterly cash dividend of $0.17 per share of common stock. The dividend is payable on June 15, 2026, to stockholders of record on June 1, 2026.

For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all.

SOURCE BorgWarner

Returned $185 million to Shareholders During First Quarter 2026

Announces 12 Awards Across Portfolio to Support Long-Term Profitable Growth

, /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) today reported first quarter results for 2026.

First Quarter Results and Business Update

BorgWarner's (the "Company") U.S. GAAP net sales increased approximately 1%, while organic net sales decreased approximately 4.2%, year-over-year compared with the first quarter of 2025. Excluding the decline in Battery Energy Systems segment sales, this performance was roughly in line with the Company's weighted light vehicle markets. The Company achieved a U.S. GAAP operating margin of 9.5% during the first quarter of 2026, or a decrease of 280 basis points, compared with the first quarter of 2025. The Company achieved an adjusted operating margin of 10.5%, or an increase of 50 basis points, compared with the first quarter of 2025. The Company's continued focus on cost controls allowed it to deliver strong performance despite a lower industry production environment. The Company returned approximately $185 million to its shareholders during the first quarter of 2026. This included the repurchase of approximately $150 million of its outstanding shares and a $35 million cash dividend payment. The Company continues to expand its data center and industrial portfolio. This now includes battery energy storage systems and bi-directional microgrid inverters. Additionally, the Company's planned 2027 turbine generator system launch is on track with B-samples being delivered to the customer. New Business Awards Across Portfolio

The Company secured multiple new business awards that are expected to support its long-term profitable growth, including the following:

Seven-year contract extension to supply eight families of engine, machine, power module, and battery management system controllers. This program starts in 2026 with a world-leading off-highway engine and machine manufacturer for large diesel engine applications. Three turbocharger program extension awards and one conquest award with a major European OEM. Production is expected to begin in phases starting in 2026 through 2029. Conquest variable turbine geometry (VTG) turbocharger and exhaust gas recirculation (EGR) cooler awards with a major European commercial vehicle OEM for on-highway use. Production is expected to begin in 2028. Dual clutch (DCT) award with a Chinese OEM for an SUV platform and a variable cam timing system (VCT) conquest award with a Japanese OEM for a hybrid program. Production is expected to begin in 2026 and 2028, respectively. Three eMotor awards with Asian OEMs, including two hybrid vehicle awards in China and one electric vehicle award in South Korea. Production is expected to begin in 2026 and 2027 in China and 2027 in South Korea. First Quarter Highlights:

U.S. GAAP net sales of $3,533 million, an increase of approximately 1% compared with the first quarter of 2025. Excluding the impact of foreign currencies, organic net sales decreased 4.2% compared with the first quarter of 2025. U.S. GAAP net earnings of $1.16 per diluted share. Excluding $0.08 of net losses per diluted share related to non-comparable items (detailed in the table below), adjusted net earnings were $1.24 per diluted share, an increase of 12% compared with the first quarter of 2025. U.S. GAAP operating income of $336 million, or 9.5% of net sales. Excluding $36 million of pretax expenses related to non-comparable items, adjusted operating income was $372 million, or 10.5% of net sales. Net cash provided by operating activities of $152 million. Free cash flow of $13 million. Financial Results:
The Company believes the following table is useful in highlighting non-comparable items that impacted its U.S. GAAP net earnings per diluted share. The non-comparable items presented below are calculated after tax using the corresponding effective tax rate discrete to each item and the weighted average number of diluted shares for the periods presented. The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations and related tax effects.

Three Months Ended March 31,

2026

2025

Earnings per diluted share

$           1.16

$           0.72

Non-comparable items:

Restructuring expense

0.06

0.11

Adjustments associated with Spin-Off related balances

0.01

(0.01)

Unrealized loss on equity securities

0.01

—

Impairment charges

—

0.15

Costs to exit charging business

—

0.11

Merger and acquisition expense, net

(0.01)

0.01

Tax adjustments

0.01

0.01

Other non-comparable items

—

0.01

Adjusted earnings per diluted share

$           1.24

$           1.11

Net sales were $3,533 million for the first quarter of 2026, an increase of approximately 1% compared with the first quarter of 2025. This increase was due to stronger foreign currencies compared to the U.S. dollar, partially offset by declining market production volumes and lower Battery Energy Systems segment sales. Net earnings for the first quarter of 2026 were $242 million, or $1.16 per diluted share, compared with net earnings of $157 million, or $0.72 per diluted share for the first quarter of 2025. Adjusted net earnings per diluted share for the first quarter of 2026 were $1.24, up approximately 12% from adjusted net earnings per diluted share of $1.11 for the first quarter of 2025. Adjusted net earnings for the first quarter of 2026 excluded net non-comparable items of $(0.08) per diluted share, while adjusted net earnings for the first quarter of 2025 excluded net non-comparable items of $(0.39) per diluted share. These and other non-comparable items are listed in the table above, which is provided by the Company for comparison with other results and the most directly comparable U.S. GAAP measures. The increase in adjusted net earnings per diluted share was primarily due to higher adjusted operating income and the impact of a lower share count as a result of 2025 and 2026 share repurchases.

Full Year 2026 Guidance Update: The Company maintained its 2026 full year guidance. At the mid-point of its 2026 guidance, BorgWarner expects to deliver another year of adjusted operating margin improvement and adjusted earnings per share growth despite the Company's expectation that its weighted light vehicle markets will be down 3% to approximately flat and a decline in the Company's Battery Energy Systems segment sales. Net sales are expected to be in the range of $14.0 billion to $14.3 billion in 2026, compared with 2025 net sales of approximately $14.3 billion. The Company's net sales guidance implies a year-over-year change in organic net sales of down 3.5% to down 1.5%. The Company's net sales guidance includes an expected year-over-year sales decline of approximately $210 million in the Company's Battery Energy Systems segment, which represents approximately a 1.5% headwind to organic growth in 2026. Foreign currencies are expected to result in a year-over-year increase in sales of approximately $200 million primarily due to the strengthening of the Euro and Chinese Renminbi against the U.S. dollar.

U.S. GAAP operating margin is expected to be in the range of 9.7% to 9.9% in 2026. Excluding the impact of non-comparable items and the add back of intangible asset amortization expense, adjusted operating margin is expected to be in the range of 10.7% to 10.9%. U.S. GAAP net earnings are expected to be within the range of $4.70 to $4.87 per diluted share. Excluding the impact of non-comparable items, adjusted net earnings are expected to increase and be in the range of $5.00 to $5.20 per diluted share. Full-year operating cash flow is expected to be in the range of $1,600 million to $1,700 million, while free cash flow is expected to be in the range of $900 million to $1,100 million.

At 9:30 a.m. ET today, a brief conference call concerning first quarter 2026 results and guidance will be webcast at: https://www.borgwarner.com/investors. Additionally, an earnings call presentation will be available at https://www.borgwarner.com/investors.

For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all.

Forward Looking Statements: This release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should ," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact, contained or incorporated by reference in this release that we expect or anticipate will or may occur in the future regarding our financial position, including our guidance for full year 2026, our business strategy and measures to implement that strategy, including changes to operations, competitive strengths, goals, expansion and profitable growth of our business and operations, plans, references to future success, including the anticipated benefits of our new business awards and other such matters, are forward-looking statements. Accounting estimates, such as those described under the heading "Critical Accounting Policies and Estimates" in Item 7 of our most recently filed Annual Report on Form 10-K ("Form 10-K"), are inherently forward-looking. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: the success of our portfolio strategy; supply disruptions impacting us or our customers, commodity availability and pricing and an inability to achieve expected levels of recoverability in commercial negotiations with customers concerning these costs; conditions in the automotive industry; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies, including artificial intelligence, and our ability to innovate in response; the difficulty in forecasting demand for electric vehicles and our electric vehicles revenue growth; potential future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; potential disruptions in the global economy caused by wars or other geopolitical conflicts; the ability to identify targets and consummate acquisitions on acceptable terms; failure to realize the expected benefits of acquisitions on a timely basis; the possibility that our 2023 tax-free spin-off of our former Fuel Systems and Aftermarket segments into a separate publicly traded company will not achieve its intended tax benefits; the failure to promptly and effectively integrate acquired businesses; the potential for unknown or inestimable liabilities relating to the acquired businesses; impacts of our exit of the charging business; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the uncertainty surrounding global trade policies, including tariffs and export restrictions and their impact on the Company, its customers and its suppliers; the outcome of existing or any future legal proceedings, including litigation with respect to various claims, or governmental investigations, including related litigation; impacts from any potential future acquisition or disposition transactions; and the other risks discussed in reports that we file with the Securities and Exchange Commission, including in Item 1A. "Risk Factors" in our most recently filed Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

BorgWarner Inc.

Condensed Consolidated Statements of Operations (Unaudited)

(in millions, except per share amounts)

Three Months Ended March 31,

2026

2025

Net sales

$       3,533

$       3,515

Cost of sales

2,856

2,876

Gross profit

677

639

Gross margin

19.2 %

18.2 %

Selling, general and administrative expenses

328

315

Restructuring expense

18

31

Other operating (income) expense, net

(5)

17

Impairment charges

—

39

Operating income

336

237

Equity in affiliates' earnings, net of tax

(6)

(10)

Unrealized loss on equity securities

1

—

Interest expense, net

11

12

Other postretirement expense

2

3

Earnings before income taxes and noncontrolling interest

328

232

Provision for income taxes

73

61

Net earnings

255

171

Net earnings attributable to noncontrolling interest

13

14

Net earnings attributable to BorgWarner Inc. 

$         242

$         157

Earnings per share attributable to BorgWarner Inc. — diluted

$        1.16

$        0.72

Weighted average shares outstanding:

Basic

205.3

217.2

Diluted

208.3

218.1

BorgWarner Inc.

Net Sales by Reportable Segment (Unaudited)

(in millions)

Three Months Ended March 31,

2026

2025

Turbos & Thermal Technologies

$         1,433

$         1,454

Drivetrain & Morse Systems

1,422

1,361

PowerDrive Systems

587

561

Battery Energy Systems

102

150

Inter-segment eliminations

(11)

(11)

Net sales

$         3,533

$         3,515

Segment Adjusted Operating Income (Loss) (Unaudited)

(in millions)

Three Months Ended March 31,

2026

2025

Turbos & Thermal Technologies

$           214

$           235

Drivetrain & Morse Systems

260

243

PowerDrive Systems

(36)

(43)

Battery Energy Systems

(2)

(22)

Segment Adjusted Operating Income

436

413

Corporate, including stock-based compensation

64

61

Restructuring expense

18

31

Intangible asset amortization expense

16

17

Accelerated depreciation

2

—

Adjustments associated with Spin-Off related balances

2

(3)

Impairment charges

—

39

Costs to exit charging business

—

26

Loss on sale of businesses

—

1

Merger and acquisition expense, net

(2)

2

Other non-comparable items

—

2

Equity in affiliates' earnings, net of tax

(6)

(10)

Unrealized loss on equity securities

1

—

Interest expense, net

11

12

Other postretirement expense

2

3

Earnings before income taxes and noncontrolling interest

$           328

$           232

Provision for income taxes

73

61

Net Earnings

255

171

Net earnings attributable to noncontrolling interest

13

14

Net earnings attributable to BorgWarner Inc.

$           242

$           157

BorgWarner Inc.

Condensed Consolidated Balance Sheets (Unaudited)

(in millions)

March 31,
2026

December 31,
2025

ASSETS

Cash and cash equivalents

$         2,110

$         2,313

Receivables, net

3,088

2,962

Inventories

1,200

1,207

Prepayments and other current assets

344

313

Total current assets

6,742

6,795

Property, plant and equipment, net

3,259

3,330

Other non-current assets

3,652

3,644

Total assets

$        13,653

$        13,769

LIABILITIES AND EQUITY

Short-term debt

$              5

$              5

Accounts payable

2,058

1,996

Other current liabilities

1,102

1,281

Total current liabilities

3,165

3,282

Long-term debt

3,876

3,894

Other non-current liabilities:

970

979

Total liabilities

8,011

8,155

Total BorgWarner Inc. stockholders' equity

5,479

5,442

Noncontrolling interest

163

172

Total equity

5,642

5,614

Total liabilities and equity

$        13,653

$        13,769

BorgWarner Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in millions)

Three Months Ended March 31,

2026

2025

OPERATING ACTIVITIES

Net cash provided by operating activities

$           152

$             82

INVESTING ACTIVITIES

Capital expenditures, including tooling outlays

(143)

(119)

Customer advances related to capital expenditures

4

2

Proceeds from settlement of net investment hedges, net

9

12

Proceeds from asset disposals and other, net

—

11

Net cash used in investing activities

(130)

(94)

FINANCING ACTIVITIES

Payments of notes payable

—

(5)

Repayments of debt, including current portion

(2)

(346)

Payments for purchase of treasury stock

(150)

—

Payments for stock-based compensation items

(28)

(18)

Payment for business acquired, net of cash acquired

(3)

—

Dividends paid to BorgWarner stockholders

(35)

(24)

Dividends paid to noncontrolling stockholders

—

(4)

Net cash used in financing activities

(218)

(397)

Effect of exchange rate changes on cash

(7)

22

Net decrease in cash, cash equivalents and restricted cash

(203)

(387)

Cash and cash equivalents at beginning of year

2,313

2,094

Cash, cash equivalents and restricted cash at end of period

$         2,110

$         1,707

Supplemental Information (Unaudited)

(in millions)

Three Months Ended March 31,

2026

2025

Depreciation and tooling amortization

$           129

$           138

Intangible asset amortization

$             16

$             17

Non-GAAP Financial Measures
This press release contains information about the Company's financial results that is not presented in accordance with U.S. GAAP. Such non-GAAP financial measures are reconciled to their closest U.S. GAAP financial measures below and in the Financial Results table above. The provision of these comparable U.S. GAAP financial measures for 2026 is not intended to indicate that the Company is explicitly or implicitly providing projections on those U.S. GAAP financial measures and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this press release and the adjustments that management can reasonably predict.

Management believes that these non-GAAP financial measures are useful to management, investors and banking institutions in their analyses of the Company's business and operating performance. Management also uses this information for operational planning and decision-making purposes.

Non-GAAP financial measures are not and should not be considered a substitute for any U.S. GAAP measure. Additionally, because not all companies use identical calculations, the non-GAAP financial measures as presented by the Company may not be comparable to similarly titled measures reported by other companies.

Adjusted Operating Income and Adjusted Operating Margin
The Company defines adjusted operating income as operating income adjusted to exclude the impact of restructuring expense, merger, acquisition and divestiture expense, intangible asset amortization expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations. Adjusted operating margin is defined as adjusted operating income divided by net sales.

Adjusted Net Earnings
The Company defines adjusted net earnings as net earnings attributable to the Company, adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations and related tax effects. The impact of intangible asset amortization expense continues to be included in adjusted net earnings.

Adjusted Earnings per Diluted Share
The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations and other gains and losses not reflective of the Company's ongoing operations and related tax effects. The impact of intangible asset amortization expense continues to be included in adjusted earnings per share.

Free Cash Flow
The Company defines free cash flow as net cash provided by operating activities minus capital expenditures, net of customer advances related to capital expenditures. The Company believes this measure is useful to both management and investors in evaluating the Company's ability to service and repay its debt.

Organic Net Sales Change
The Company defines organic net sales changes as net sales change year-over-year excluding the estimated impact of foreign exchange ("FX") and net mergers, acquisitions and divestitures.

Adjusted Operating Income and Adjusted Operating Margin (Unaudited)

Three Months Ended March 31,

(in millions)

2026

2025

Net sales

$       3,533

$       3,515

Operating income

$         336

$         237

Operating margin

9.5 %

6.7 %

Non-comparable items:

Restructuring expense

$          18

$          31

Intangible asset amortization expense

16

17

Accelerated depreciation

2

—

Adjustments associated with Spin-Off related balances

2

(3)

Impairment charges

—

39

Costs to exit charging business

—

26

Merger and acquisition expense, net

(2)

2

Loss on sale of businesses

—

1

Other non-comparable items

—

2

Adjusted operating income

$         372

$         352

Adjusted operating margin

10.5 %

10.0 %

Free Cash Flow Reconciliation (Unaudited)

Three Months Ended March 31,

(in millions)

2026

2025

Net cash provided by operating activities

$           152

$             82

Capital expenditures, including tooling outlays

(143)

(119)

Customer advances related to capital expenditures

4

2

Free cash flow

$             13

$           (35)

First Quarter 2026 Organic Net Sales Change (Unaudited)

(in millions)

Q1 2025
Net Sales

FX

Organic
Net Sales
Change

Q1 2026
Net Sales

Organic
Net Sales
Change %

Turbos & Thermal Technologies        

$  1,454

$      81

$  (102)

$   1,433

(7.0) %

Drivetrain & Morse Systems

1,361

49

12

1,422

0.9 %

PowerDrive Systems

561

31

(5)

587

(0.9) %

Battery Energy Systems

150

6

(54)

102

(36.0) %

Inter-segment eliminations

(11)

—

—

(11)

— %

Net sales

$  3,515

$    167

$  (149)

$  3,533

(4.2) %

Adjusted Operating Income and Adjusted Operating Margin Guidance Reconciliation (Unaudited)

Full-Year 2026 Guidance

(in millions)

Low

High

Net sales

$     14,000

$     14,300

Operating income

$       1,361

$       1,416

Operating margin

9.7 %

9.9 %

Non-comparable items:

Restructuring expense

$          80

$          90

Intangible asset amortization

57

57

Accelerated depreciation

2

2

Adjustment associated with Spin-Off related balances

2

2

Merger and acquisition expense, net

(2)

(2)

Adjusted operating income

$       1,500

$       1,565

Adjusted operating margin

10.7 %

10.9 %

Adjusted Earnings Per Diluted Share Guidance Reconciliation (Unaudited)

Full-Year 2026 Guidance

Low

High

Earnings per Diluted Share

$           4.70

$           4.87

Non-comparable items:

Restructuring expense

$           0.28

$           0.31

Adjustment associated with Spin-Off related balances

0.01

0.01

Unrealized loss on equity securities

0.01

0.01

Merger and acquisition expense, net

(0.01)

(0.01)

Tax adjustments

0.01

0.01

Adjusted Earnings per Diluted Share

$           5.00

$           5.20

Free Cash Flow Guidance Reconciliation (Unaudited)

Full-Year 2026 Guidance

(in millions)

Low

High

Net cash provided by operating activities

$        1,600

$        1,700

Capital expenditures, including tooling outlays

(700)

(600)

Free cash flow

$          900

$        1,100

Full Year 2026 Organic Net Sales Change Guidance Reconciliation (Unaudited)

(in millions)

FY 2025 Net
Sales

FX

Battery
Energy
Systems
("BES")
Sales
Change

Organic Net
Sales
Change

FY 2026 Net
Sales

Organic Net
Sales
Change
Excluding
BES %

Organic Net
Sales
Change
Including
BES %

BorgWarner
LV
Weighted
Market %

Low

$  14,316

$      200

$    (210)

$    (306)

$  14,000

(2.1) %

(3.6) %

(3.0) %

High

$  14,316

$      200

$    (210)

$       (6)

$  14,300

— %

(1.5) %

— %

Full Year 2026 Estimated Year-Over-Year Change in Production (Unaudited)

North America

Europe

China

Total

BorgWarner
Weighted Total

Light vehicle

(3)% to 1%

(3)% to 0%

(4)% to (1.5)%

(3)% to (1)%

(3)% to 0%

SOURCE BorgWarner

New business awards support passenger car and van programs across multiple combustion engine platforms BorgWarner's broad turbocharger portfolio helps support performance, fuel economy and emissions targets The awards include both extensions of existing business and a conquest win with a long-standing European customer , /PRNewswire/ -- BorgWarner, a global product leader in delivering innovative and sustainable mobility solutions, has secured multiple turbocharger business awards with a major European OEM for a range of passenger car and van applications. The awards, which include both extensions of existing business and a conquest win, further strengthen BorgWarner's position in combustion vehicle applications. Production is expected to begin in phases from the second quarter of 2026 through the second quarter of 2029.

BorgWarner Secures Multiple Turbocharger Awards with Major European OEM "These business wins reflect BorgWarner's strong turbocharging technology portfolio, our competitive solutions and the trust we have built with this long-standing customer," said Dr. Volker Weng, Vice President of BorgWarner Inc. and President and General Manager, Turbos and Thermal Technologies. "As the industry continues to demand highly efficient combustion solutions, BorgWarner remains committed to delivering advanced turbocharger technologies, reliable supply and strong launch execution for our customers around the world."

The awarded business includes turbocharger solutions for multiple vehicle programs spanning both gasoline and diesel applications. The portfolio includes variable turbine geometry, twin-scroll wastegate and regulated two-stage turbocharging technologies tailored to a range of engine and vehicle requirements, helping the customer meet increasingly demanding performance, fuel economy and emissions targets across a broad range of applications.

The products for these awards will be manufactured at BorgWarner's facilities in Rzeszów, Poland and Kirchheimbolanden, Germany. The programs also highlight BorgWarner's ability to combine advanced engineering with strong supply chain execution to support complex, high-volume customer launches.

About BorgWarner
For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. With a focus on sustainability, we're helping to build a cleaner, healthier, safer future for all. 

Forward-Looking Statements: This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact contained or incorporated by reference in this press release that we expect or anticipate will or may occur in the future regarding our business strategy, competitive strengths, goals, expansion and growth of our business and operations, plans, references to future success and other such matters, are forward-looking statements. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: the possibility that our turbocharging technology will not achieve their intended benefits; the supply disruptions impacting us or our customers, commodity availability and pricing; conditions in the automotive industry; competitive challenges from existing and new competitors, including original equipment manufacturer ("OEM") customers; the challenges associated with rapidly changing technologies, including artificial intelligence, and our ability to innovate in response; potential future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; potential disruptions in the global economy caused by wars or other geopolitical conflicts; our dependence on automotive and truck production, which is highly cyclical and subject to disruptions; our reliance on major OEM customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the uncertainty surrounding global trade policies, including tariffs and export restrictions, and their impacts on the Company, its customers and its suppliers; and the other risks discussed in reports that we file with the Securities and Exchange Commission, including in Item 1A, "Risk Factors" in our most recently-filed Annual Report on Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

SOURCE BorgWarner